SunGard Managed Services Launches Financial Incentives

SunGard Managed Services Launches Financial Incentives

Special Managed Services OfferSunGard Availability Services briefed me a few weeks ago about its overall managed services strategy. Since that time, SunGard has announced a flurry of managed services activity -- including discounts worth up to $15,000. To me, it sounds like SunGard is striving to get "wait-and-see" customers off the fence and into managed services. Here are some of the details.

According to a SunGard spokeswoman:

  • From now until June 30, SunGard Availability Services is holding a special offer of up to $15,000 for its AdvancedHosting enterprise managed services and colocation solutions.
  • This offer is available at SunGard’s managed services facilities in Atlanta, Chicago, Dallas, Toronto and the New York Metro Area.

Deeper Details

Basically, customers executing an AdvancedHosting managed services contract can leverage one of the following options:
  • Waive setup fees up to a maximum of $15,000. This offer is applicable to both new customers as well as existing customers who are renewing and adding new services at the same time.
  • One (1) month of complimentary service (up to $15,000). This offer is applicable to both new and existing customers who are renewing and adding new services at the same time.
Customers executing a contract for SunGard’s AdvancedHosting colocation or managed colocation services can choose one of the following options:
  • Waive setup fees up to a maximum of $10,000. This offer is applicable to new customers as well as existing customers who are renewing and adding new services at the same time.
  • One (1) month of complimentary service (up to $10,000). This offer is applicable to both new and existing customers who are renewing and adding new services at the same time.

Just Like Gillette

On the one hand, successful managed services companies should not have to make such aggressive financial offers. But on the other, I think the incentives are a sign of the economic times -- rather than a sign of weakness at SunGard.

Customers in all vertical markets are taking longer to evaluate and sign managed services contracts. SunGard's financial incentives may help to replace short-term customer indicision with long-term recurring revenues. It reminds me of Gillette's basic business model: Give them the razor and keep charging for the blades.

Big Player

SunGard has made multiple managed services moves in recent weeks. The company recently opened a new 120,000-square-foot managed services facility in Philadelphia, Pa. SunGard said it expects the $25 million facility to attract more than 30,000 customer visits in 2009.

SunGard's managed services effort extends beyond the east coast. True believers include Jive Software, a Portland, Oregon-based provider of so-called Social Business Software. Jive, which specializes in software as a service (SaaS) on March 3 disclosed plans to leverage SunGard's managed services.

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